Sentiment continues to surge along with the rising market. Today’s results from the AAII and the Investor’s Intelligence poll are both showing above average levels of bullishness. The AAII is reporting a 1.6% increase over last week in overall bullishness to 42.9% (see here). Bearish sentiment has fallen to 30.9%. Bullish sentiment is above the historical average of 39% while bearish sentiment is also slightly above its historical average of 30%. Although we are not quite at “extreme” levels investors are showing a greatly increased risk appetite.
The Investors Intelligence survey of financial advisers showed a similar trend in rising bullish sentiment. Bullish advisers jumped to 48.9% from 48.3% while bearish sentiment fell to 18.9%. Sentiment continues to march towards the January highs when bullishness reached 52% and bearishness was just 16%.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.